Oppenheimer Initiates Coverage On Allot Communications Ltd. At Outperform, $16 PT

Oppenheimer initiating coverage of Allot Communications ALLT with an Outperform rating and a $16 price target. While DPI technology has been around for some time, Oppenheimer believes it's the strong growth in wireless data and video that finally has pushed service providers to seriously consider it as a key element in their ability to manage networks, subscribers and applications. With a broad and growing set of wireless customers, the fastest solutions available and a strong pipeline, Allot's growth outlook appears impressive and its margin outlook is just now starting to show its potential. Oppenheimer sees wins at Vodafone, Virgin Media and Orange as validation and expect Allot to show improving fundamentals through the foreseeable future. Oppenheimer thinks Allot represents a compelling early cycle growth opportunity in the fast growing wireless data market. With leading products, a strong and growing customer base and plenty of margin expansion ahead, it believes the shares represent a compelling investment. Oppenheimer has a $16 PT and Outperform rating on ALLT ALLT closed Monday at $13.41